Shares of Rivian (NASDAQ:RIVN) stock are in full focus after it was announced that the electric vehicle (EV) company would form a collaboration with Starfire Mine and BrightNight. The mine, which used to be one of the largest coal mines in the U.S., will convert into a solar energy center through a four-stage process. Construction of Phase 1 will begin in 2025. BrightNight will lead the project, while the mine will be renamed to BrightNight Starfire Renewable Energy Center. Rivian worked together with The Nature Conservancy through the vetting process to select a sustainable, clean energy project.
So, what’s Rivian’s role in the new energy center? During phase 1, Rivian will purchase 100MW of renewable energy based on a power purchase agreement (PPA) with BrightNight. This amount of energy could power up to 450 million miles of renewable driving annually.
RIVN Stock: Rivian Unveils “Carbon-Neutral” Add-On Plan
“Rivian is one of the most innovative and forward-thinking manufacturers in America, and we are proud that they have chosen BrightNight and the Starfire Renewable Energy Center to help achieve their sustainability goals,” said BrightNight CEO Martin Hermann. “Together, we are transforming a coal mine, reinvesting in a region eager to continue its role as an energy leader, and demonstrating the incredible impact of corporate power procurement.”
Rivian will obtain renewable energy credits from the energy center. After that, the company will use the credits to provide a “carbon-neutral” add-on for its customers.
“Eventually this will be bundled with every Rivian sale,” said CEO R.J. Scaringe. “To start, this will be a package that’s going to be available with the vehicle.”
This isn’t Rivian’s first foray into the carbon credit market. Last month, MIT Technology Review reported that Rivian was interested in earning Verra carbon credits for its home EV charger. Rivian could then sell these credits elsewhere for an additional revenue stream.
By 2040, Rivian has a goal of becoming net-zero carbon. In March, the company became the first automaker to sign the United Nations 24/7 Energy Compact. The compact contains principles for providing carbon-free energy sources in order to combat climate change.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
